"Bloomberg warns of potential US $ 2 billion decline in Bangladesh’s apparel exports this year", 27 May 2025

Bangladesh’s Ready-Made Garments (RMG) exports could decline by up to US $ 2 billion this year amid rising tariffs and logistical challenges, according to a forecast by Bloomberg Economics...

... the sector faces headwinds from increased US tariffs, potential reduction in shipments to India, energy shortages, and trade restrictions. The US, a major market for Bangladeshi garments, has seen tariff hikes that could impact export competitiveness.

Additionally, India revoked the transshipment facility for Bangladesh’s export cargo in April, complicating transportation routes and raising shipping costs. The move, combined with India’s restrictions on imports of garments, agro-processed foods, and other goods from Bangladesh at land ports, has sparked concerns about significant export losses. India, which imports around US $ 700 million worth of apparel from Bangladesh annually, is expected to replace these imports with domestic sources by 2027 if the ban persists.

The situation is further compounded by Bangladesh’s impending graduation from Least Developed Country (LDC) status in November 2026, which could lead to increased tariffs and duties on its exports, elevating logistics costs and transit times...

The combination of tariff hikes, logistical hurdles, and political restrictions poses a significant risk to the country’s vital garment industry in the year ahead.